franking credits

Franking credits, also known as imputation credits, are a tax credit attached to dividends paid by Australian companies. Where an investors tax rate is below the company tax rate, there are more tax credits than tax payable by the investor. Currently, those excess tax credits can be refunded back to the investor when they lodge their tax return. Those with low incomes, such as retirees and superannuation funds, who are not in receipt of a Government pension, are the investors that will be most impacted by this policy as the franking credits they receive as a refund would stop.

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

franking credits

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

franking credits

To recap, imputation credits are a tax credit attached to dividends paid by Australian companies.  The dividend imputation system provides shareholders a credit for the tax paid by the company on its profits. This ensures those profits are only taxed once in the hands of the shareholders, rather than both at the company level and the shareholder level.

Under the current system, which has been in place for the past 18 years, those whose tax rate is less than the company tax rate can receive their excess dividend imputation credits as a tax refund.

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.